Overview of Exact Sciences’ Business and Financial Performance

Business Background

Exact Sciences is a leading provider of cancer screening and diagnostic tests. The company’s flagship product is Cologuard, a non-invasive stool-based DNA test that screens for colorectal cancer. Exact Sciences also offers Oncotype DX tests that help guide cancer treatment decisions.

Key Q1 2024 Highlights

• Tested over 1 million people globally for cancer and rare diseases
• Recognized as a Gallup Exceptional Workplace
• Increased Cologuard adoption and access
• Grew Oncotype DX international ordering providers
• Launched new Riskguard hereditary cancer test
• Generated evidence to support future tests like Oncodetect

Financial Results

Revenue

Total Q1 2024 revenue was $637.5 million, up 6% from Q1 2023.

• Screening revenue grew 7% to $474.8 million due to more completed Cologuard tests.
• Precision Oncology revenue rose 5% to $162.7 million due to more Oncotype DX tests.

Revenue (Millions)	Q1 2024	Q1 2023	Change
Screening	$474.8	$443.2	+$31.6
Precision Oncology	$162.7	$155.4	+$7.3
Total	$637.5	$602.5	+$35.1

Expenses

Operating expenses rose due to increased investments in research, clinical programs, and personnel to support Exact Sciences’ growth.

• Research and development expenses grew 16% to $110.6 million.
• Sales and marketing expenses increased 3% to $192.4 million.
• General and administrative expenses rose 12% to $243.1 million.

Bottom Line Results

Exact Sciences posted a net loss of $127.8 million in Q1 2024 compared to a $100.3 million net loss in Q1 2023. The wider net loss reflects Exact Sciences’ continued investments to grow its business.

Financial Condition

Cash Position

Exact Sciences ended Q1 2024 with a strong cash position, including:

• $347.5 million in cash and cash equivalents
• $304.6 million in marketable securities

This provides substantial liquidity to fund continued investments in Exact Sciences’ business.

Debt

As of March 31, 2024, Exact Sciences had $50 million drawn on a $150 million accounts receivable facility. The company has the ability to repay this balance in cash if needed.

2024 Priorities

Exact Sciences’ top 2024 priorities are to:

1. Focus on people and customers
2. Bring portfolio to life
3. Magnify impact

Key areas of focus include advancing its product pipeline, generating evidence to support new tests, and testing more people to expand access and grow the business.

Analysis

• Exact Sciences delivered solid revenue growth in Q1 2024, driven by increased demand for its cancer screening tests.

• Investments to expand capacity and advance its pipeline resulted in wider losses, but position the company for future growth.

• With a strong cash position and multiple levers to drive profitability, Exact Sciences is financially well-equipped to fund its strategic priorities in 2024.

• Execution across its three key priorities of people, portfolio, and impact will be vital to Exact Sciences’ continued success as a leading cancer diagnostics company.